Turkey imposes restrictions on steel exports to Israel

Turkey has announced restrictions on the export of a wide range of products to Israel, including steel. Reuters reports this with reference to the country’s Ministry of Trade.

The restrictive measures will apply to the export of 54 categories of products, including iron, marble, steel, aluminum, bricks, fertilizers, construction equipment and products, aviation fuel, etc. According to the ministry, the restrictions will remain in effect until the ceasefire in Gaza is lifted.

Over the past 6 months, Ankara has maintained commercial ties with Israel, but this has caused a negative reaction within the country. The restrictions came into effect after Israel rejected Turkey’s request to participate in an airdrop operation to deliver humanitarian aid to Gaza.

In response to these measures, Israeli Foreign Minister Israel Katz said that Turkey had unilaterally violated trade agreements between the countries. The country’s authorities are planning to introduce restrictive measures on exports in response.

In recent weeks, Turkish President Tayyip Erdoğan has faced growing criticism for continuing commercial ties with Israel, which has sparked some anti-government protests and weakened popular support. In the first quarter of 2024, exports to Israel from Turkey reached $1.1 billion, down 21.6% y/y.

In addition to trade restrictions, Turkey is discussing blocking airspace and ports for planes and ships heading to Israel.

Israel is an important market for Turkish steelmakers, although Turkish supplies have fallen significantly since the start of the war in the country. In February, Turkish steel companies shipped 30.3 thousand tons of rebar to Israel (-33.8% y/y), and in 2023, 726.41 thousand tons (-29.9% y/y), which is 21.4% of total exports. The restrictions are likely to have a significant impact on the country’s steel exports.

As GMK Center reported earlier, Turkey reduced steel production by 4% in 2023 compared to 2022 to 33.714 million tons. The country’s average monthly steel production in 2023 amounted to 2.81 million tons, down 4.04% y/y.